Joint Tenants, joint loan?

Sorry for dumb question but..

Suppose husband and wife buy an IP as joint tenants. If negatively geared then 1/2 of loss is deducted from gross salary by both. Do they have to have taken out the loan in joint names for this to occur. What if the loan is only in the husband's name?
Thanks
 
If you're both on the title, most lenders would want both of you on the loan.

Any tax deductions or payments are determined on the ownership of the property, not the loan.
 
Probably speak with your accountant but you could possibly say the higher earning spouse owns X%, with the lower earning spouse owning Y%.
 
What if the loan is only in the husband's name?
Thanks

Hi Glenn

Shouldn't be a problem in as far as borrowing is concerned, but you should check with your Accountant or the ATO whether the tax situation could then be allocated to the named borrower only

As I understand it, if you own the property you are entitled to receive - and are considered to receive, whether you do or not -your legal share of the rent.

Therefore, if you are joint proprietors, you each receive a half share of the income and are responsible for a half share of the outgoings (rent, insurance etc) so whether the ATO would accept that only one of you is responsible for interest ......

Of course, if one of you contributed half the money and the other owner then borrowed their share, the matter would be clear in that only one of the owners needed to borrow and therefore only that owner could claim interest expense.

I have just written a loan in this format, the lender had no problem at all.

If you call the ATO you will find them to be very helpful in helping you sort out what you want to do

Hope this helps
Kristine
 
Many thanks Kristine and other people for the helpful comments.
In the end decided to go joint tenancy and both names on loan.
Cheers
 
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